The City of Melbourne’s latest Shopfront Audit reveals the city remains a top destination for retail businesses – recording its lowest shopfront vacancy rate since 2020.
Almost 85 per cent of shopfronts across the city are now occupied – with a vibrant mix of global, national and independent retailers setting up shop across Melbourne, from Bourke Street Mall to Docklands.
Several more major openings are on the way, including Mecca at Collins Arcade and TK Maxx – following a busy run of recent arrivals like POP MART and JD Sports.
After hitting a record high of 27.9 per cent in 2021, the central CBD retail vacancy rate has dropped to a new low of 5.5 per cent – down from 6.5 per cent in November 2024.
The broader CBD retail vacancy rate has also reached a low of 7.8 per cent, down from 8.4 per cent in November 2024.
Across the municipality, the retail vacancy rate has decreased to 9.1 per cent – less than a third of the 31.5 per cent vacancy rate recorded in 2021.
Business is also booming across Melbourne’s neighbourhoods – the vacancy rate in Docklands has fallen 10 per cent in the past two years, with only 14.7 per cent of shopfronts currently vacant.
Council’s Small Business Grant program has helped 15 city businesses activate empty shopfronts in the city over the past two years – including dessert shops Cherry Pie and Cupcake Central, plus Neo Ceramics and Primos Barbershop.
The City of Melbourne has supported a further 123 businesses to set up shop in the city over the last year through its Business Concierge team.
Quotes attributable to Lord Mayor Nick Reece
“Melbourne has once again set the benchmark, recording another year of declining shopfront vacancy rates – reinforcing its reputation as a great place to do business.”
“A CBD retail vacancy rate of just 7.8 per cent is remarkable for a city of our size and global standing. Behind that number is the drive and resilience of business owners, their hardworking teams – and the dedicated support of our Business Concierge service.”
“We’re proud to welcome more global, national and local businesses into Melbourne’s thriving retail scene, as we work together towards the city’s most successful Christmas trading period yet.”
Quotes attributable to City Economy and Business portfolio head Councillor Kevin Louey
“Melbourne remains the retail capital of Australia – and we’re proud to see so many businesses choose to set up shop in our city.”
“We’re seeing a strong surge in businesses opening their doors in Melbourne – from global brands to local heroes – fueling the fire of the city’s retail revival.”
